The Department of Labor has issued an exemption allowing the Memorial Sloan Kettering Cancer Center's pension plan to use a captive insurance subsidiary to reinsure pension risks. This exemption enables an increase in pension benefits for participants, provided certain conditions are met. The exemption aims to balance cost savings for the center with additional financial benefits for the plan's participants and beneficiaries. The arrangement includes strict oversight and compliance measures to ensure the participants’ benefits are secure.
Simple Explanation
The Memorial Sloan Kettering Cancer Center got special permission from a government department to help manage their worker's retirement money in a way that could save money and give a bit more to the workers, but they have to follow lots of rules to keep it fair and safe.